Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Surviving The Market Crash: Philosophy, Notes And Strategy During Recessions

For those of you still without a plan, or pulling your hair out, or beyond panic mode or just still so, so unsure I found this fairly basic and hopefully calming. I hope it helps.

"We are income investors, but any income above the risk-free rate comes with risk. There's no free lunch. There's no having our cake and eating it too. If we are living on the income then price should not matter. Price transparency is a double-edged sword. For one, we know just how much one of our positions is worth. Unlike baseball cards which are hard to value - stocks, bonds, and other public securities are traded out in the open giving us proper valuations.

The moves in the bond market are beyond crazy. The changes in the Treasury and municipal bond markets in particular have not been seen in decades. This is pure fear as we have noted several times. But consumer sentiment and confidence is a key requirement for a functioning and healthy economy. If a consumer is scared and does want to go out spend, invest, create economic activity, then the economy is going to suffer. Add in this unique recession caused by a virus whereby citizens cannot even go outside and congregate in large numbers (like malls, sporting events, etc.), economic activity is going to grind to a halt."

Alpha Gen Capital @SeekingAlpha
Sign In or Register to comment.